The German appeals court ruling that blocked Sonova (Phonak) from purchasing GN's hearing health business segment, which includes GN Otometrics, Interton, Beltone and, or course, Resound, has forced GN to rethink its corporate structure to improve performance across the board.
Separate management will oversee two operations: headsets and GN Resound with two, equally ranked CEOs. Toon Bouten remains CEO of the GN headset business. The position as CEO for GN ReSound has yet to be filled. Under this reorganization, GN Deputy CEO Jens Due Olsen resigned from GN's executive management on November 6, 2007 while GN ReSound CEO Jesper Mailind keeps that post until a new CEO can be found.
GN ReSound reported a four percent loss of revenue below third quarter '06. The company assigned the loss (in an up market) to lost retailers and outlets, and wholesalers holding back orders until the final outcome of the GN ReSound case was settled. The company's 3rd Q earnings were also adversely affected by a pending law suit. Lawyers' fees and a settlement figure will have to be calculated upon completion of the suit. This uncertainty leaves many wholesales and retailers unsure about orders placed with GN Resound.
Positive news from the company: GN Resound, according to U.S. sources, reports good sales gains within the company's Azure product line - a product line designed specifically for the fast-growing, baby-boomer market segment.
For more information visit www.gnresound.com or the ReSound Web Channel on Audiology Online.
GN Retains Ownership of GN Resound
Share:
